Japan Data

Global Chip Shortage Hits Auto Industry and Manufacturing in Japan

Technology Economy

The global shortage of semiconductor chips, a staple of industry, has greatly affected a number of Japanese companies.

The global semiconductor chip shortage is having a huge impact on the Japanese automobile sector and the manufacturing industry as a whole. A Teikoku Databank survey has revealed that the production and supply of goods and services of 115 listed companies have been negatively affected since April 2021 due to the shortage. This included 81 companies that were forced either directly or indirectly to adjust their production output.

Meanwhile, the number of companies that had either seen their business performance, such as sales and profits, negatively affected or expected to see that impact in the future, reached 60.

The industry most affected was manufacturing with 86 companies. Within that industry, there was a visible impact in the automobile-related sectors, not only for automobile parts and car manufacturing, but also metal stamping products and vehicle drive systems. In many cases, companies had been forced to make production adjustments due to cutbacks by domestic and overseas car manufacturers in response to the semiconductor shortage. The electronics industry—which includes manufacturers of smartphone parts, home appliances, and game consoles—was also significantly affected.

In the wholesale and retail industry, the delivery date of new cars was delayed, which affected peripheral sectors such as dealerships and automotive coating suppliers. This had a huge knock-on effect across the entire spectrum of the automobile industry.

(Translated from Japanese. Banner photo © Pixta)

manufacturing automobiles Semiconductors